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  • In the realm of HR management, few situations are as challenging as a government shutdown. When a shutdown occurs, the repercussions are widespread, affecting federal employees and government contractors. In this blog, we’ll explore a critical aspect of HR administration during a government shutdown: handling Family and Medical Leave Act (FMLA) leave and paid time off (PTO).

    The Impact Of A Government Shutdown

    A government shutdown can disrupt the lives of millions of employees, including approximately 4 million military and civilian workers. Among them, 2.2 million are federal employees, while the remainder consists of active-duty military and civilian workers. These shutdowns can occur when Congress fails to pass a budget, and the consequences can be extensive.

    During a government shutdown, certain federal employees must continue working without pay. This group includes individuals involved in law enforcement, national defense, and life and property protection. Examples range from postal workers and federal prison guards to FBI agents, Border Patrol officers, airport security screeners, and air traffic controllers.

    Understanding FMLA Leave During A Shutdown

    For HR professionals, managing FMLA leave is one of the most complex aspects of a government shutdown. According to guidance from the Office of Personnel Management (OPM), employees on FMLA leave are advised to commence a leave without pay during a government shutdown. This recommendation stems from the lack of an established work schedule during a shutdown, making it impossible to accommodate FMLA leave.

    As a result, all previously scheduled FMLA leave and PTO during a shutdown furlough period are canceled. This cancellation applies to employee FMLA leave requests and other PTO forms. It’s crucial for HR professionals to grasp that any scheduled FMLA leave should not be deducted from the employee’s FMLA entitlement during a furlough.

    PTO Becomes Unpaid

    In a government shutdown scenario, various types of paid leave, such as:

    • Vacation days
    • Parental leave
    • Military leave
    • Court leave
    • Bone marrow or organ donor leave
    • Transition into unpaid leave

    In addition, this unpaid leave does not count against the employee’s allotted PTO. The OPM’s guidance for shutdown furloughs clarifies that employees must be placed in furlough status without pay during scheduled time off. If there is government-funded paid leave during a shutdown, there is no authority to provide that pay since the government is effectively shut down. Any PTO taken during this period results in a debt to the government that lacks legal authorization until the funding issue is resolved.

    The Importance Of Communication

    Employers should ensure that they provide furlough notices to workers scheduled to be on FMLA leave during a government shutdown. The only exception is if employees are not expected to work during the furlough period for reasons such as accompanying a military spouse overseas on a one-year leave without pay, per the OPM’s December 2021 guidance.

    Accurate Record-Keeping Is Key

    During a government shutdown, accurate record-keeping for FMLA leave is paramount. HR professionals must maintain clear documentation of when employees are at work and when they are not. This documentation ensures legal compliance and helps manage the complex web of leave policies during a shutdown.

    The Assistance Of A PEO

    Partnering with a professional employer organization (PEO) during a government shutdown can be a game-changer for HR professionals and organizations. PEOs like GMS specialize in managing complex HR functions, including leave administration, with precision and compliance. Through this partnership, small business owners can confidently navigate the intricate rules and regulations of government shutdowns. Partnering with a PEO ensures that employees’ rights are upheld and allows HR professionals to focus on strategic initiatives, knowing that the intricacies of FMLA leave and PTO are in capable hands. In times of uncertainty, a PEO can provide the stability and support needed to weather the storm, allowing organizations to emerge stronger on the other side. Interested in learning more? Contact us today.

  • The COVID-19 pandemic changed how we work and forced many of us to reflect on our current lifestyles. Many realized the jobs they were working weren’t fulfilling or flexible. Countless people began quitting their jobs which became known as “The Great Resignation.” UKG conducted a survey which showed that nearly half of employees worldwide would never recommend their company or profession to their children or to people they care about.

    As a business owner, you may wonder if your workers feel this way about your business. Sometimes, you may never know the truth, making it challenging to eliminate the feeling your employees are experiencing. However, if you conduct performance reviews or simply enforce one-on-one meetings with your leaders and their team, it can create a more welcoming environment for your employees to open up in. Unfortunately, that might not be all you need to combat these feelings.

    Continue reading to learn how you can ensure your employees enjoy working for your company and recommend you to their network.

    Purposeful Work = Job Satisfaction

    The main question employees should be asking themselves is what’s more important, a good salary or meaningful work? 52% of employees worldwide tell their children that meaningful work is the most important aspect to consider. However, 50% say the same about salary. In addition, generations that are making their way into the workforce are said to care more about the following aspects of one’s career:

    • Time to care for and spend with family
    • A feeling of fulfillment
    • A successful career path

    Since the feeling of purposeful work is a main priority for the coming generations, it’s your job as a business owner to take the necessary steps to ensure your employees feel fulfilled and find purpose in their actions. The following will help your employees find more meaning in their work.

    Provide support and employee care benefits

    Offering benefits to your employees is essential as it shows them you’re invested in their overall health and future. In addition, a quality benefits package will ultimately help you attract and retain top talent. The following are benefits you should consider adding to your benefits package if you don’t already:

    • Health insurance
    • Paid time off (PTO)
    • Paid holidays
    • Flexible schedules
    • Education assistance
    • Paid sick time
    • Volunteer opportunities

    In addition to providing your employees with resources for good health, it also gives them more purpose in their daily tasks. If they know they have a certain number of vacation days, they are more productive at work, knowing they can take a day off. You must encourage your employees to take breaks and use their PTO, letting them know it’s more than okay to take time for themselves. Try implementing a “use it or lose it” policy, so your employees are encouraged to take time off; otherwise, they will lose their vacation time at the end of the calendar year.

    Build a positive work environment

    One of the most important factors in adding more purpose to your employee’s work is creating a positive work environment. Let’s face it, creating a healthy, positive working environment brings out the best in everyone. The following are factors to consider when creating a positive work environment:

    • Social connection
    • Open communication
    • A culture of empathy
    • Willingness to help

    A positive work environment makes employees feel that the culture reflects their values and beliefs, making them more efficient, effective, and fulfilled in their work. The following are additional benefits of a positive workplace that may convince you that a positive environment helps workers feel more purpose in their work:

    • Employees take more pride in the work they do for a company they believe in
    • There’s an inverse relationship between cost and employees’ levels of happiness
    • It builds a supportive culture that fosters growth for individuals and your organization

    Link personal drivers with a team or organizational goals

    When employees understand their job’s greater purpose, they are happier, more engaged, and more creative. As a business owner, when your employees see how their job fits the company’s goals, staff turnover decreases, and productivity rises. To learn about your team members’ goals and drivers, it’s essential that you and your leaders meet with each employee to determine their drivers. From there, they’ll need to assess how they can connect their motivations with the organization’s goals. For example, if one of your company’s goals is transparent actions and your employee’s driver is to build honest relationships, that would be more motivating since you both are working towards the same goals.

    Use feedback to boost positivity

    Positive feedback helps motivation, boosts confidence, and shows your employees you value them. Giving positive feedback should be a simple part of your manager’s daily tasks. Research shows that 68% of employees who receive accurate and consistent feedback feel fulfilled. When you provide them with feedback, it motivates them, and they better understand how and where improvements are needed and where their strengths lie. In addition, when you share success stories or feedback from clients for a job well done, it’s a powerful way to inspire your team and keep them connected with the people they’re helping.

    GMS Is Here To Help

    When you partner with GMS, you are given the tools and resources to help you determine your employee’s goals and drivers. We provide you with performance review services that help you with the following:

    • Demystify the approach to implementing performance management
    • Recommend the best way to set up an employee appraisal and review process
    • Assess and develop employee performance reviews
    • Move an organization to an online, electronic system for maximum efficiency when conducting a review process

    Our HR experts take on the administrative burdens you don’t have the time to focus on. Let us do the heavy lifting so you can focus on what you do best, growing your business. Contact us today.

  • As a benefit that many companies offer to their employees, paid time off (PTO) policies constantly evolve to accommodate changes in the working world. However, many employers fall into the trap of overly complicated policies that are not only difficult for employees to understand, but also difficult to track.

    It’s important to find a policy that will make employees happy and maintain effective workplace attendance within the workforce. The good news is that implementing a good PTO policy doesn’t have to be complicated. Here’s what you need to know in order to build the right PTO policy for both you and your employees.

    How Does PTO Work?

    PTO can work in different ways depending on your exact policy. Each option boils down to giving every eligible employee an allotment of time that they can use to take off work for various reasons.

    The exact way that those paid days off are granted depends on the type of policy. Common PTO policy examples include:

    • Traditional leave
    • PTO banks
    • Unlimited PTO
    • PTO donation

    Traditional leave

    A traditional PTO policy gives employees a set number of days for different types of time off, such as vacation time, personal days, sick days, and holidays. These days can be used over the course of a year and renewed once the employee hits a certain date. New employees typically start with a set number of days and can earn more after being with the company for a certain number of years.

    PTO banks

    PTO bank policies revolve around giving employees access to a pool of paid time off that they can use for any reason. As with traditional plans, employees can use these days over the course of the year until they run out or when their pool renews at a certain date. This type of plan gives employees more flexibility when it comes to needing days off

    Unlimited PTO

    Unlimited PTO plans allow employees to take as many days off as they need, as long as the manager approves them. This option is less common than other PTO policies, but has grown steadily in popularity because of its flexibility and freedom. However, these plans can also require a well-written policy to avoid both overuse and underuse.

    PTO donation

    PTO donation is less of an overall plan and more of an add-on to other policies with set allotments of paid leave. Organizations that allow for PTO donation give employees the ability to give some of their days to a coworker if they need them, such as if an individual needs extra time to take care of a loved one. This option keeps the organization’s overall pool of paid leave the same but gives employees some added flexibility.

    What Are The Benefits Of A PTO Policy?

    While the U.S. does not federally mandate paid vacation or holiday time, there are plenty of good reasons to provide this form of benefit. PTO is regularly among the most desired benefits for job seekers, which is a big reason why roughly 80% of private businesses offer some form of PTO. In turn, these businesses enjoy the following advantages:

    • Reduced absenteeism – According to SHRM, more than half of employers who combined sick time and vacation time in the same PTO plan reduced absenteeism by up to 10%.
    • Employee performance – Burnout is a real problem. Giving employees the ability to take meaningful vacations and mental health days helps them stay more productive in the long run.
    • Employee morale and trust – A PTO policy is a way to show employees that you care about their personal lives and let them use their time as they see fit. In return, those employees are more likely to be happy at work and stay with the company.

    What Factors Impact Which PTO Policy Is Best For My Business?

    There are several variables that your business needs to address when it comes to providing PTO. This process involves asking a few key questions that will play a major role in how you’ll shape your PTO policy.

    How many days off should employees have?

    The right amount of time off can vary greatly depending on a business and its employees. According to Indeed, the average amount of paid vacation days can range from 11 to 20 depending on an employee’s service length.

    The best place to start is to review your business’ internal staffing needs to identify a comfortable range of days that accommodate workloads and employee satisfaction. You can also check industry and regional averages to stay competitive with the competition.

    Does it matter how employees use their time off?

    The answer to this question will likely dictate whether you opt for a traditional policy or something more flexible. If it’s important to separate vacation days from sick leave and other time off, a traditional PTO policy is a natural choice.

    Should employees accrue PTO over time or receive a lump sum?

    The exact timing of how and when employees receive their allotment of time off can vary. Some businesses keep this process simple by giving employees access to their entire pool of PTO days on their anniversary date or at the beginning of the calendar or fiscal year. Other businesses may opt for a slower accrual system where employees earn time off by pay period, month, or a set number of hours. Each method is valid, so it depends on how your organization prefers to dole out and track this time.

    Can employees roll over unused time?

    It’s important to address what will happen to any unused PTO time. Studies show that Americans only end up using 54% of their eligible vacation time. Some companies try to encourage PTO usage through a “use it or lose it” policy, while others allow workers to roll some or all their remaining time over.

    How do I track PTO?

    While businesses in the past relied on manual documentation for PTO tracking, employers can rely on technology to ease this burden. Software like a human resources information system (HRIS) can streamline the management and tracking of personal time, accruals, limits, payouts, and other details. Businesses can try and utilize software in house or work with a Professional Employer Organization (PEO) or another HR partner to handle these keys responsibilities.

    Do local and state regulations impact my policy?

    While employers play a major role in shaping their company’s PTO policy, it’s also essential to keep compliance in mind. Certain states and regions have laws in place that direct your policies. For example, some states may require businesses to roll time over or compensate employees for unused payout if they leave the company. These laws vary greatly, so make sure you review local and federal laws when it’s time to draft or update a policy.

    PTO Policy Best Practices

    No matter how you shape your PTO policy, it’s important to take some measures to maximize their effectiveness.

    Clearly outline your PTO policy in your company handbook

    Your employee handbook is an essential compliance tool, so it’s only natural to use it to document your PTO policy. Make sure to outline the following details to give employees a clear understanding of how they can follow your policy:

    • Who is eligible for PTO (full-time employees, part-time employees, etc.)
    • How much time off they receive and how it’s accrued
    • Paid and unpaid leave options
    • The differences between vacation time, sick time, and more (if necessary)
    • The process for requesting time off (and how it’s reviewed)
    • Instances where time off requests may be denied
    • Payout practices
    • Consequences for violation

    Set some limits on usage to protect your business

    While it’s natural for employees to take time off when they want to, there are some scenarios that can pose problems for employers. Consider implementing the following measures to avoid internal issues caused by short notice, unfortunate timing, and more.

    • Place a cap on the number of days that employees may request during a vacation leave.
    • Regulate the number of employees from within a department that may be out at any given time.
    • Mandate how much notice employees must provide prior to taking vacation.
    • Create a waiting period for new employees before they can start using or accruing PTO.

    Openly encourage employees to take time off

    While being a hard worker is a great quality, there’s only so much that most employees can go through without a break. Studies have shown that taking time off from work not only improves employee performance and productivity, but also reduces stress and the risk for heart issues.

    Having a PTO policy is one step, actively encouraging employees to use it is another. It’s critical to make employees comfortable with taking time off to maximize the benefits of your policy. SHRM recommends using the following strategies:

    • Give employees verbal or written permission to take time off, even if they’re worried about who will pick up the slack.
    • Encourage employees to take off half days or shorter breaks if they don’t want to utilize a full day or other extended periods.
    • Make time off a topic of conversation during employee reviews or other conversations.
    • Lead by example and make it known when managers are taking time off and that it’s encouraged that all employees do so as well.

    Simplify Your PTO Process

    While PTO has several benefits, it is yet another process to add to an ongoing list of administrative responsibilities. Fortunately, employers have options to simplify PTO and strengthen their business.

    GMS partners with businesses to support their employees while saving employer’s valuable time. We provide our clients with resources like GMS Connect to help them track time off, automate accruals, and streamline the approval process. In addition, our HR account managers can help you design a policy tailored to your company’s needs.

    Taking time off shouldn’t take a lot of work. Contact GMS today to talk to one of our experts about how we can enhance your employees’ experience and increase your operational efficiencies.

  • Your PTO Policy

    When an employee calls to say they woke up feeling like death warmed over, do you have to tell them to drag their butt to work because your company doesn’t have a Sick Time Policy? Or when you receive vacation requests, do you have to think twice about how to track it because your Time Off Policy is so complex? Unfortunately, many would answer yes to these questions because of inefficient Paid Time Off (PTO) Policies.

     

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    Keep It Simple

    As a benefit that many companies offer to their employees, PTO Policies are constantly evolving to accommodate the changes in the working world. However, many employers fall into the trap of overly complicated policies that are not only difficult for employees to understand, but difficult to track. Keeping a simple policy that will make employees happy and maintain effective workplace attendance is easier than you might think. 

    An accrual table based upon tenure is a simple way to track the amount of time an employee may take off. It fosters employee loyalty as they work to climb the ladder to achieve more vacation time, while the accrual method regulates how frequently time off can be taken by not awarding PTO all at once.

    Charmaine Hollaway wrote a recent article addressing increased vacation time requests around the holidays. An organization can effectively manage such requests by creating a time off policy that incorporates the following:

    • Place a cap on the number of days that employees may request during a vacation leave.
    • Regulate the number of employees from within a department that may be out at any given time.
    • Mandate how much notice employees must provide prior to taking vacation.

    Simultaneously tracking a Vacation and Sick policy for employees can be further simplified by automating the accruals through your payroll service. Working with a professional employer organization like GMS makes this possible. Our HR Account Managers can help you design a policy that is tailored to your company’s needs and we can automate the tracking to take that time-consuming task off of your plate. So the next time you look to update your PTO Policy, consider simplifying the process.

    Quote Source: Midwest HR

    Image Source: Call Center Comics

  • Paid time-off policies allow employees to miss time without causing as many problems for your business. With a good PTO policy in place, your company can allow for the occasional illness or prepare for vacation requests without having to worry.

    Setting up a paid time off policy to track days off.

    Set Some Ground Rules for  Paid Time Off (PTO)

    When creating a PTO policy, it’s important to set up a few rules so that employees are clear on what it means to use a PTO day and how many they have total. A policy should also include an accrual table with how many PTO days employees can get based on how long they have been with the company.

    One potential obstacle for a PTO policy is the fear of having too many employees use their days at the same time. Your policy can manage these requests by:

    •  Placing a cap on the number of days that employees may request during a vacation leave

    •  Regulating the number of employees from a department that may be out at any given time to avoid an empty department

    •  Requiring employees to provide enough notice prior to taking  PTO

    Have a Tracking System in Place

    No, this doesn’t suggest tracking where employees go to see if they’re actually sick. Your PTO policy will need to keep track of days taken off by each employee. It’s important to make sure that your policy isn’t so complicated that it makes tracking a pain.  If you have the right payroll and HR system in place, the tracking of PTO days should be easy and the employees should be able to access their PTO days at the “click” of a button.

    If you need help setting up a PTO policy that can accurately track days off, Group Management Services can help. Our experts can work with you to design a policy that works best for your business. We then help you automate your system to streamline tracking and save you the stress. Contact us today to talk to our experts about how GMS can benefit your business in 2016 and beyond.

  • Paid time off (PTO) is a powerful tool to help employees stay refreshed and motivated. Unfortunately, the prospect of falling behind on projects or being hit by a deluge of missed emails can be more terrifying than a prolonged visit with your in-laws.

    Employees shouldn’t be afraid to take PTO, whether it’s due to potential workplace stress or a fear to take time off. Here are three ways that your business can make vacations less stressful for employees.

    Image of a frustrated employee. Help releive stress with open PTO policies for your workplace.

    Make it Known that Vacations are Good

    Refreshed, focused employees are more productive than burnt-out workers. The occasional vacation gives employees a chance to recharge their proverbial batteries, but American workers don’t always take advantage of this benefit. However, not all employees feel comfortable using their PTO.

    A survey from Project: Time Off shows that over half of American workers had unused vacation days last year. That same survey reported that 22 percent of people felt that using their vacation time made them seem replaceable. Nervous, overworked employees aren’t going to be able to give you their best. Make sure that you have a very clear, open policy about taking time off and encourage workers to use their PTO days. That way your employees won’t be too worried to take a well-deserved break.

    Vacation Preparation Time

    Even if employees aren’t worried about asking to use vacation time, they might be afraid of what will happen if they leave for a week. Roughly 37 percent of employees are afraid that nobody will do their work while they’re away on vacation. Another 30 percent are concerned that nobody else could do their job.

    Proper vacation planning can help mitigate these fears and set your business up for success. Help employees decide which tasks can be handled by other employees while they’re gone. Set up a direct backup employee who can answer questions while an employee is gone. It’s also good to block off some time so that a vacationing employee can catch up on everything instead of rushing straight back to their regular work.

    Protect Your Business from Problematic Vacation Requests

    Vacations can cause problems for business owners as well. An impromptu mental health day here and there isn’t a big deal, but last-minute vacation requests can mess up work flows and deadlines. 

    A good PTO policy should set guidelines for how far in advance employees need to request time off. This will help protect your business from sudden departures and give employees fair notice why you have to turn down a request without ample notice.

    Have a PTO Policy in Place

    Employees get a set amount of PTO days for a reason. Group Management Services can help your business set up a clear PTO policy that will keep track of used PTO days and streamline vacation requests. Contact GMS today about employee benefits administration and how a PTO policy will make your vacation process a lot less stressful.

  • In the past, business owners in Michigan had the option of whether they wanted to offer paid sick leave for their employees. However, Michigan adopted the Earned Sick Time Act (ESTA) Sept. 5, 2018, making it the 11th state to have a mandatory paid sick leave law in effect. Within a few months, the state’s legislature amended the bill, adopting the Paid Medical Leave Act (PMLA) as a modified version of the initial act that will go into effect starting March of 2019. 

    With all the changes in Michigan’s paid sick leave laws, it’s time for business owners in the state to take stock of exactly what the PMLA requires of them, if they should reevaluate their paid leave policies, and what they need to do to be compliant with the new law.

    An employee staying home through her company’s paid sick leave policy. 

    What the Paid Medical Leave Act Does

    The short answer is simple: staring in March, employees in Michigan will accrue paid sick time based on the amount of time they work. 

    Which Businesses are Affected

    While the ESTA originally impacted all businesses to some degree, the PMLA only covers employers with 50 or more individuals. However, small employers with fewer than 50 individuals may offer paid medical leave if they choose to do so.

    Which Employees are Affected

    The ESTA had a broader definition of eligible employees, which included full-time employees, part-time employees, independent contractors, and temps. The PMLA limits the scope of which employees are eligible for paid sick leave with a dozen exclusions listed out in the senate bill.

    • An individual who is exempt from overtime requirements under section 13(a)(1) of the fair labor standards act, 29 USC 213(a)(1)
    • An individual who is not employed by a public agency, as that term is defined in section 3 of the fair labor standards act, 29 USC 203, and who is covered by a collective bargaining agreement that is in effect
    • An individual employed by the United States government, another state, or a political subdivision of another state
    • An individual employed by an air carrier as a flight deck or cabin crew member that is subject to title II of the railway labor act, 45 USC 151 to 188
    • An employee as described in section 201 of the railway labor act, 45 USC 181
    • An employee as defined in section 1 of the railroad unemployment insurance act, 45 USC 351
    • An individual whose primary work location is not in Michigan
    • An individual whose minimum hourly wage rate is determined under section 4b of the improved workforce opportunity wage act, 2018 PA 337, MCL 408.934b
    • An individual described in section 29(1)(l) of the Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.29
    • An individual employed by an employer for 25 weeks or fewer in a calendar year for a job scheduled for 25 weeks or fewer
    • A variable hour employee as defined in 26 CFR 54.4980H-1
    • An individual who worked, on average, fewer than 25 hours per week during the immediately preceding calendar year

    How Time is Accrued

    Both the ESTA and PMLA agreed that eligible employees are set to earn paid medical leave as soon as the act goes into effect March 2019. However, the FMLA changes the rate of accrual from one hour per every 30 hours to one per every 35 hours of service time. It also limits accrual to only one hour of paid sick leave in a calendar week. 

    In addition, the FMLA lowers the cap for paid leave to 40 hours per year instead of the ESTA’s 72. Time can be carried over into the next year, but usage is still capped at 40 hours. The PMLA also added an allowance for employers to add a waiting period of 90 calendar days before new hires can use paid sick leave.

    How Time is Used

    In terms of use, employees have a lot of wiggle room. Foreseeable leave, such as planned surgeries, procedures, etc., require up to seven days of notice. However, a sudden illness is not foreseeable, which means employees only need to give notice of sick leave as soon as reasonably possible. Earned paid leave can be used in one-hour increments, although the PMLA does permit employers to set a different increment policy in their employee handbooks.

    Another notable difference between the PMLA and the ESTA is that the amended bill gives employers more freedom to request documentation. Per the PMLA, employers can require reasonable documentation when employees use paid leave for absences of less than three days. In addition, employees have at least three days to provide the necessary documentation for absences.

    What it Means for Your Business

    If you have a business in Michigan and that business has fewer than 50 individuals, the PMLA won’t directly affect you. However, the act is part of a growing trend of more states adopting some form of required paid sick leave. This trend can serve as an opportunity to attract and retain better talent.

    Whether or not paid sick leave is mandatory for your business, you can still make it feel like a benefit for your employees. According to Access Perks, 88 percent of employees named sick leave as one of the most desirable PTO benefits. By offering paid sick leave—especially one that goes beyond any legally-required minimums—you can make your business more attractive to potential job candidates while rewarding your current employees.

    It is important to note that some business owners may be concerned that employees may abuse paid sick leave. However, that may not necessarily be the case. Monster notes that absenteeism did not notably increase when a paid sick leave law was passed in San Francisco and that the same employees who were likely to falsely call in sick in the past are the same who would abuse paid leave when it’s offered. 

    In fact, Access Perks notes that “89 percent of employees come to work sick with 19 percent admitting to doing this more than once a month.” By giving your employees the opportunity to take paid sick leave, they’ll be more inclined to use it when they really need it instead of forcing themselves to come to work and infecting other employees.

    How to Protect Your Business

    Regardless of your paid leave policy, you’ll need to adjust your policies and employee handbook. An outdated handbook can open you up to liability concerns, so it’s important to have your paid leave policy laid out so that employees have a clear understanding of the rules. It also allows you to have documentation in place to protect you from any legal claims against your company.  

    Another way to be safe is to work with experts who can help you roll out a new paid sick leave policy or any other program. As a Professional Employer Organization, GMS can help you establish an attractive benefits package and update your handbook appropriately. We can also help you stay ahead of new legislation or upcoming changes that may impact your business so you can act ahead of time. 

    Whether you need help with a paid leave policy or some other important business need, our Detroit branch or one of our other locations across the country can assist with risk management, outsourcing payroll, benefits administration, and other key HR functions. Contact GMS today to talk to one of our experts about how we can help your business.

  • As a small business owner, it’s important to try to prepare for anything—even Mother Nature. In Florida, that means doing what you can to make sure your business and your employees are as ready as possible for hurricanes, named storms, and other events that can cause serious problems.

    Hurricane season is a stressful time that requires plenty of preparation and employee management to help weather any issues. Here are some tips that you can use to help you and your employees navigate any potential problems before, during, and after a storm.

    A hurricane approaching Florida, causing small business owners to prepare for the storm.

    Train Your Employees Ahead of Time

    Good employees play a major role in the success of your business, but sometimes they don’t always look out for themselves. The best time to prepare for a natural disaster is long before one arrives, so it’s smart to include hurricane education as part of a regular training program, especially if you have a lot of transient workers who never experienced a storm before.

    People move to Florida all the time. According to the U.S. Census Bureau, nearly 330,000 moved to the Sunshine State from 2016 to 2017, which is an average of nearly 900 people per day. That means a lot of workers in the state have never been through a bad storm before. A hurricane education session can help them know what they should always have available, including:

    • Battery operated TV and fans
    • Generator
    • Second refrigerator just to store water (will keep somewhat cool even after power is out)
    • Nonperishable canned goods

    While basic hurricane preparation education and supplies are good, you can go the next step and see if an expert would be willing to help. Local meteorologists are a great resource for hurricane training, whether they give you some helpful advice or are willing to visit your business to talk to your employees. It never hurts to ask.

    The frequency of the training depends on the makeup of your business. If you have a small workforce and little turnover, training can be more infrequent. If you’re in a high turnover business or have a larger staff, yearly training sessions can be a good idea. It’s also important to stress to your employees that they may want to consider leaving the area depending on the storm. Sometimes the best plan of action is to be nowhere near the hurricane when it hits.

    Close the Office When Necessary

    In general, the decision to close the office due to an incoming storm is up to you. OSHA does stipulate in its general duty clause, that all places of employment are “free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees.” Essentially, if the storm makes your workplace a dangerous location, it’s time to shut down and evacuate.

    Another reason to play it safe and close your business if the weather is questionable is to avoid any potential liability issues. While the commute to and from your office is outside of your workplace, there is a grey area in terms of whether you’re on the hook if the impending or active storm causes an employee to get hurt or have an accident. A court may rule in your favor, but you may not want to take that risk when you can simply play it safe and close your office.

    Handle Wages with Care

    If you decide to close your business, your employees may still expect to be paid. According to the Society for Human Resource Management (SHRM), what they’re owed and if you need to pay them at all can depend on the type of employee:

    • Nonexempt employees are only owed for the hours they’ve worked according to the Fair Labor Standards Act (FLSA). This means that you do not owe them any money when you close your business.
    • Exempt employees are owed their full salary if the weather forces the office to close for less than a full workweek. However, you may require these employees to take paid time off (PTO) during these days.

    While the FLSA outlines your minimum requirements, that doesn’t mean that you should follow these guidelines. Forcing an employee to take PTO sends a message that you see the hurricane as their vacation, which will rub even the most loyal workers the wrong way. In addition, being left without a paycheck for something out of their control can create some discontent, even if the business isn’t able to generate any money during the closure either.

    One solution to this is to go above and beyond if possible. If you know what an employee typically makes during a week, find a compromise, whether it’s paying them in full or even offering a portion of their normal earnings. This can show them that you’re still trying to help during a difficult period. If you can’t make that kind of financial commitment or you need to make serious repairs to the business after the storm, explain the situation so that your employees understand instead of feeling blindsided by a lack of pay.

    Be Open and Accommodating About Leaves of Absence

    Even if you decide to keep your business open, there may be employees who want to stay home with their families. In this case, the Department of Labor allows you to consider such leave as an absence for personal reasons. As with wages, however, this can send a bad message to a good employee. Instead, it can be best to be flexible for employees who want to be at home to prepare for a storm, especially if they plan to head out of state.

    You can also offer some alternatives. For example, you can allow employees to work from home if possible. This will allow them to cut down on travel during a storm without sacrificing valuable work hours, at least until the power goes out.

    Employees may also be absent from work after a storm to attend to post-disaster needs, such as meeting with insurance adjusters. SHRM also notes that “employees affected by a natural disaster are entitled to leave under the FMLA [Family and Medical Leave Act] for a serious health condition caused by the disaster,” such as the need to care for a family member.

    If you want a more set structure in terms of how many days employees are allowed off for storms, you can include writing in your handbook or leave policies that sets out a specific process. The problem with this is that no hurricane is the same. One storm could last two days, while another could last 10. A set policy may pigeonhole you into an exact number of days if you’re not careful.

    Protect Important Documents

    Both you and your employees have important documents that must always stay safe. Unfortunately, hurricanes don’t cooperate. In Florida, it’s good to invest in document storage that can protect both business and personal documents from the elements, like a fireproof and waterproof safe.

    While a great start, a safe can’t protect your documents from a worst-case scenario. If a storm is projected to be bad enough to make you leave the area, make sure to take your documents with you so that the storm doesn’t take them away for good. Digitizing documents in a securely-stored online portal can also make sure that these files are safe from storms and accessible anyplace with an internet connection.

    Always Communicate

    Good communication is a key part of hurricane preparation. It’s important to keep in contact with your employees long before a storm hits, during the storm, and after it’s gone.

    While some employees will know the risks and protect themselves, others may not understand the danger of these storms or will be afraid to stay home out of fear of losing their job. Monitor the situation and make employees feel comfortable with their decision to stay or go if the coming storm looks dangerous. There are times where storms pass over and you don’t need to close, but it’s always good to err on the side of caution instead of being wrong about the weather.

    If you have any other questions about protecting your business before, during, and after a storm, it’s best to communicate with a trusted HR partner. GMS is a Professional Employer Organization that serves companies of all sizes across the nation. The experts in our Fort Myers, Florida branch can work with you to help you protect your business and manage key HR functions that complicate your day and bog down your schedule.

    Contact GMS today to talk to one of our experts in our Florida office about how we can help your business prepare for the future.

  • Paid time off (PTO), while an attractive employee benefit, can present some challenges for small business owners. From determining the number of PTO days to creating an employee leave policy to tracking time off, there’s a lot that must be taken into consideration. Use this guide to determine how much PTO your employees should receive.

     Woman travelling on PTO.

    Benefits of Paid Time Off

    There are many benefits small businesses can use to their advantage by offering PTO. Perhaps the best part is that it’s one of the least expensive benefits for employers to offer when compared with health insurance, retirement plans, and other benefits. 

    When putting together an employee’s compensation package, PTO can be a great benefit to attract and retain top talent. According to Glassdoor, PTO stacks up as the second most important benefit to employees, following health insurance. With 73 percent of small businesses offering PTO to full-time employees, according to the National Federation of Independent Business (NFIB), it’s almost critical to stay competitive in the labor market.

    Studies also show that PTO has the power to make employees more productive, engaged, and relaxed. The American Psychological Association says that taking time off can help employees relieve stress, prevent job burnout, and even cure headaches and backaches. An Ernst & Young study also found that for every 10 hours of PTO taken, employee performance ratings improve by 8 percent.

     

    Average Paid Time Off

    According to the U.S. Bureau of Labor Statistics (BLS), the average employee receives 10 days of paid time off per year, not including sick days and holidays. However, the average number of PTO days can vary depending on company size and years of service:

      1-99 employees 100+ employees All companies
    PTO after 1 year 9 days 12 days 10 days
    PTO after 5 years 13 days 16 days 15 days
    PTO after 10 years 15 days 19 days 17 days
    PTO after 20 years 17 days 23 days 20 days

    Consider using these averages as a benchmark when determining your paid time off policy. 

     

    Do Employers Have to Give Paid Time Off?

    The Fair Labor Standards Act (FLSA) does not require employers to pay for time not worked. However, employee leave laws for holidays, sick leave, jury duty, and bereavement can vary by state. Be sure to understand whether you’re required to pay employees during their time off in each of these circumstances.

     

    Accruing Paid Time Off

    Once you’ve determined how much PTO you want to offer employees, you’ll need to determine how it will be accrued. Will full PTO be given to employees immediately upon being hired? Or will PTO be accrued by the number of hours worked? Additionally, some employers require newly hired employees to wait a set amount of days before being offered PTO. Keep in mind that some states regulate PTO accruals, so it’s best to first check your PTO payout laws first.

     

    How to Create a Paid Time Off Policy

    After hammering out all the details of your PTO offerings, you’ll need to create a written policy detailing:

    • Number of PTO days offered.
    • How PTO will be accrued.
    • How much notice must be given before taking PTO.
    • How much PTO can be taken at a time.
    • How many employees can take off on the same day.
    • How employees will be compensated for any time left on the table in the event an employee quits or is terminated.

    Make sure your PTO policy is documented in your employee handbook and signed by all employees.

     

    Paid Time Off Management

    For many small and mid-size businesses, managing and tracking PTO for each employee can be challenging. As a Professional Employer Organization (PEO), GMS can help with paid time off management. Through our online HR portal, GMS offers a paid time off tracking system to approve PTO requests and track time off. We can also help craft a comprehensive PTO policy and ensure your handbook is updated accordingly to protect your business best.

    In addition, GMS can help save you time and stress by managing key business functions like payroll, human resources, benefits administration, and other important services. Contact us today to request a consultation.